Home Education Glossary Tokenization


Share on

Tokenization, in the realm of blockchain and digital assets, is the process of converting rights to an asset into a digital token on a blockchain.

This revolutionary concept enables the representation of real-world assets — such as art, real estate, or even commodities — into digital tokens, allowing for fractional ownership and enhanced liquidity. By breaking down these assets into tokens, ownership becomes divisible, enabling broader access for investors who can purchase fractions of high-value assets.

Blockchain’s immutable ledger ensures transparent and secure transactions, bolstering trust and reducing fraud. Smart contracts embedded within tokens can automate various aspects of asset management, such as dividends, voting rights, or revenue sharing, enhancing efficiency.

Tokenization’s potential spans across industries, revolutionizing traditional finance, real estate, art, and supply chain management. Its ability to democratize access to assets, streamline transactions, and create new investment opportunities marks it as a transformative force shaping the future of finance and ownership.